Majority of Kazakhstan companies- bankrupts, living due to support of state structures and banks- source

October 5 2015, 14:56

The majority of big Kazakhstan companies are bankrupts living due to support of the state and commercial banks, said KazTAG's source in the banking field.

"As of today the majority of Kazakhstani tycoons, is a combination of PR of a rich man, wearing smart with Forbse crown, but in reality his business is on the verge of bankruptcy. I have a list of companies whose business differs from their words," said the source. "For instance, one companies producing flour and starchy foods, has debt to the state on the state programs to about 10 bln tenge. A company manufacturing asbestos sheeting has 1.2 bln debts. Now these so called businessmen blackmail the state and commercial banks that they may stop their companies, people will lose employment, there will be a social shock, the debts will remain uncovered," he said. He added some "pseudo-successful business manage to sell their stake in business to the state in the form of development institutes and then the Government has to carry responsibility for the strategic mistakes on business planning, and sometimes theft of their owners".